Finance
Fannie Mae (FNMA) and Freddie Mac (FHLMC) are important to Kansas real estate because they:
ADirectly lend money to Kansas homebuyers
BPurchase conforming loans from lenders, providing liquidity to the mortgage market✓ Correct
CSet interest rates for all Kansas mortgages
DInsure FHA loans in Kansas
Explanation
Fannie Mae and Freddie Mac purchase conforming mortgage loans from lenders, packaging them into mortgage-backed securities. This provides liquidity to the lending market so lenders can make more loans.
Related Kansas Finance Questions
- Which type of loan is guaranteed by the U.S. Department of Veterans Affairs?
- Kansas first-time homebuyers purchasing in rural areas may be eligible for which type of zero-down-payment federal loan program?
- A Kansas consumer's FICO score is 720. This score would generally qualify them for:
- In Kansas, a lender who charges excessive fees above what was disclosed may be in violation of:
- What is 'hard money lending' and how might it be used in Kansas real estate?
- What is 'seller financing' (owner financing) and when might it be used in Kansas?
- What is a 'Loan Estimate' (LE) in a Kansas mortgage transaction?
- A Kansas manufactured home (HUD-code home) classified as real property requires:
Practice More Kansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Kansas Quiz →